II 

118TH CONGRESS 

2D SESSION S. 5338 

To amend the Consolidated Farm and Rural Development Act to modify 

the experience requirement for direct farm ownership loans, eliminate 

the 10-year limitation on direct farm ownership loans, allow direct loans 

to be used for refinancing indebtedness, increase the lifetime limitation 

on debt forgiveness per borrower, and provide flexibility with respect 

to loan fund set asides for beginning farmers and ranchers, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 18, 2024 

Mr. WELCH introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Consolidated Farm and Rural Development 

Act to modify the experience requirement for direct farm 

ownership loans, eliminate the 10-year limitation on direct farm ownership loans, allow direct loans to be used 

for refinancing indebtedness, increase the lifetime limitation on debt forgiveness per borrower, and provide flexibility with respect to loan fund set asides for beginning 

farmers and ranchers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Debt Relief and Farm 

3 Credit Access Act’’. 

4 SEC. 2. PERSONS ELIGIBLE FOR DIRECT FARM OWNERSHIP 

5 LOANS. 

6 Section 302(b) of the Consolidated Farm and Rural 

7 Development Act (7 U.S.C. 1922(b)) is amended— 

8 (1) by striking paragraph (1) and inserting the 

9 following: 

10 ‘‘(1) IN GENERAL.—The Secretary may make a 

11 direct loan under this subtitle only to a farmer or 

12 rancher who has at least 1 year of experience sub13 stantially participating in the management and busi14 ness operations of a farm or ranch, as determined 

15 by the Secretary.’’; and 

16 (2) by striking paragraphs (3) and (4) and in17 serting the following: 

18 ‘‘(3) WAIVER AUTHORITY.—In the case of a 

19 qualified beginning farmer or rancher, the Secretary 

20 may waive the 1-year requirement described in para21 graph (1) if the qualified beginning farmer or ranch22 er— 

23 ‘‘(A) has an established relationship with 

24 an individual who has experience in farming or 

25 ranching, or with a local farm or ranch oper26 ator or organization, approved by the Secretary, 


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1 that is committed to mentoring the qualified be2 ginning farmer or rancher; or 

3 ‘‘(B) has other acceptable education or ex4 perience for an appropriate period of time, as 

5 determined by the Secretary.’’. 

6 SEC. 3. IMPROVEMENTS TO CERTAIN PROVISIONS OF THE 

7 CONSOLIDATED FARM AND RURAL DEVELOP8 MENT ACT. 

9 (a) ALLOWED PURPOSES OF DIRECT LOANS.—Sec10 tion 303(a)(1) of the Consolidated Farm and Rural Devel11 opment Act (7 U.S.C. 1923(a)(1)) is amended by striking 

12 subparagraph (E) and inserting the following: 

13 ‘‘(E) refinancing the indebtedness of the 

14 farmer or rancher, if the farmer or rancher— 

15 ‘‘(i) has used a direct loan under this 

16 subtitle to refinance indebtedness not more 

17 than 4 times previously; and 

18 ‘‘(ii) is refinancing a debt obtained 

19 from a creditor other than the Secretary.’’. 

20 (b) EFFECT OF PREFERRED LENDER CERTIFI21 CATION.—Section 339(d)(4)(B) of the Consolidated Farm 

22 and Rural Development Act (7 U.S.C. 1989(d)(4)(B)) is 

23 amended— 

24 (1) by striking ‘‘institutions to’’ and inserting 

25 the following: ‘‘institutions— 


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1 ‘‘(i) to’’; and 

2 (2) in clause (i) (as so designated)— 

3 (A) by striking ‘‘subsection relating’’ and 

4 inserting ‘‘subsection, relating’’; 

5 (B) by striking ‘‘worthiness, the’’ and in6 serting ‘‘worthiness or the’’; and 

7 (C) by striking ‘‘collection and liquidation 

8 of loans, and to’’ and inserting the following: 

9 ‘‘or collection of loans; and 

10 ‘‘(ii) to’’. 

11 (c) LIFETIME LIMITATION ON DEBT FORGIVENESS

12 PER BORROWER.—Section 353(o) of the Consolidated 

13 Farm and Rural Development Act (7 U.S.C. 2001(o)) is 

14 amended by striking ‘‘$300,000’’ and inserting 

15 ‘‘$600,000’’. 

16 SEC. 4. LOAN FUND SET-ASIDES FOR BEGINNING FARMERS 

17 AND RANCHERS. 

18 Section 346(b)(2) of the Consolidated Farm and 

19 Rural Development Act (7 U.S.C. 1994(b)(2)) is amend20 ed— 

21 (1) in subparagraph (A)— 

22 (A) in clause (i)(II), by inserting ‘‘, to the 

23 extent practicable’’ after ‘‘April 1 of the fiscal 

24 year’’; and 


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1 (B) in clause (iii), by inserting ‘‘, to the 

2 extent practicable’’ after ‘‘September 1 of the 

3 fiscal year’’; and 

4 (2) in subparagraph (B)(iii), by inserting ‘‘, to 

5 the extent practicable’’ after ‘‘April 1 of the fiscal 

6 year’’. 

Æ 


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